MILWAUKEE, April 21, 2015 /PRNewswire/ -- ManpowerGroup
(NYSE: MAN) today reported that net earnings for the three months
ended March 31, 2015 were
$65.7 million, or 83 cents per diluted share, compared to net
earnings of $70.1 million, or
86 cents per diluted share, a year
earlier. Revenues for the first quarter were $4.5 billion, a decrease of 7% from the prior
year period.
Financial results in the quarter were significantly impacted by
the stronger US dollar relative to several foreign currencies
compared to the prior year period. On a constant currency
basis, revenues increased 7% and earnings per share increased
16%. Earnings per share in the quarter were negatively
impacted 17 cents by changes in
foreign currencies compared to the prior year.
Jonas Prising, ManpowerGroup CEO,
said, "2015 is off to a strong start as we built on the progress we
made last year delivering good results in the first quarter. It is
encouraging to see the early signs of more broad based improvement
in Europe, setting the stage for
what we believe could be a slow but sustained labor market recovery
in that region. The strong start to the year gives us confidence
that we are on the right track and that our focus on permanent
recruitment and our market leading solutions offerings continues to
pay off. We are well placed to seize further opportunities as
economic trends improve."
"We anticipate second quarter earnings per share will range
between $1.21 to $1.29, which
includes an estimated unfavorable currency impact of 29 cents."
In conjunction with its first quarter earnings release,
ManpowerGroup will broadcast its conference call live over the
Internet on April 21, 2015 at
7:30 a.m. CDT (8:30 a.m. EDT). Interested parties are invited to
listen to the webcast and view the presentation by logging on to
http://www.manpowergroup.com in the section titled "Investor
Relations."
Supplemental financial information referenced in the conference
call can be found at http://www.manpowergroup.com in the section
titled "Investor Relations."
About ManpowerGroup:
ManpowerGroup® (NYSE: MAN) is the world's workforce expert,
creating innovative workforce solutions for more than 65 years. As
workforce experts, we connect more than 600,000 people to
meaningful work across a wide range of skills and industries every
day. Through our ManpowerGroup family of brands – Manpower®,
Experis®, Right Management ® and ManpowerGroup® Solutions – we help
more than 400,000 clients in 80 countries and territories address
their critical talent needs, providing comprehensive solutions to
resource, manage and develop talent. In 2015, ManpowerGroup was
named one of the World's Most Ethical Companies for the fifth
consecutive year and one of Fortune's Most Admired Companies,
confirming our position as the most trusted and admired brand in
the industry. See how ManpowerGroup makes powering the world of
work humanly possible: www.manpowergroup.com
Forward-Looking Statements
This news release contains statements, including earnings
projections, that are forward-looking in nature and, accordingly,
are subject to risks and uncertainties regarding the Company's
expected future results. The Company's actual results may differ
materially from those described or contemplated in the
forward-looking statements. Factors that may cause the Company's
actual results to differ materially from those contained in the
forward-looking statements can be found in the Company's reports
filed with the SEC, including the information under the heading
'Risk Factors' in its Annual Report on Form 10-K for the year ended
December 31, 2014, which information
is incorporated herein by reference.
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2015
|
2014
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
services (a)
|
$4,542.2
|
$4,904.0
|
-7.4%
|
6.6%
|
|
|
|
|
|
Cost of
services
|
3,780.2
|
4,087.5
|
-7.5%
|
6.6%
|
|
|
|
|
|
Gross
profit
|
762.0
|
816.5
|
-6.7%
|
6.7%
|
|
|
|
|
|
Selling and
administrative expenses
|
639.2
|
689.6
|
-7.3%
|
4.9%
|
|
|
|
|
|
Operating
profit
|
122.8
|
126.9
|
-3.2%
|
16.5%
|
|
|
|
|
|
Interest and other
expenses
|
10.6
|
9.2
|
16.1%
|
|
|
|
|
|
|
Earnings
before income taxes
|
112.2
|
117.7
|
-4.7%
|
14.9%
|
|
|
|
|
|
Provision for income
taxes
|
46.5
|
47.6
|
-2.3%
|
|
|
|
|
|
|
Net
earnings
|
$ 65.7
|
$ 70.1
|
-6.3%
|
12.8%
|
|
|
|
|
|
Net earnings per
share - basic
|
$ 0.83
|
$ 0.88
|
-5.7%
|
|
|
|
|
|
|
Net earnings per
share - diluted
|
$ 0.83
|
$ 0.86
|
-3.5%
|
16.3%
|
|
|
|
|
|
Weighted average
shares - basic
|
78.7
|
79.8
|
-1.4%
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
79.6
|
81.2
|
-2.0%
|
|
|
|
(a)
|
Revenues from
services include fees received from our franchise offices of $5.5
million for both the three months ended March 31, 2015 and 2014.
These fees are primarily based on revenues generated by the
franchise offices, which were $249.9 million and $256.6 million for
the three months ended March 31, 2015 and 2014,
respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2015
|
2014
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$ 725.1
|
$ 720.5
|
0.6%
|
0.6%
|
Other
Americas
|
359.3
|
350.6
|
2.5%
|
16.1%
|
|
1,084.4
|
1,071.1
|
1.2%
|
5.7%
|
Southern
Europe:
|
|
|
|
|
France
|
1,040.8
|
1,217.3
|
-14.5%
|
4.2%
|
Italy
|
270.1
|
274.7
|
-1.7%
|
20.0%
|
Other Southern
Europe
|
226.2
|
230.0
|
-1.7%
|
16.7%
|
|
1,537.1
|
1,722.0
|
-10.7%
|
8.4%
|
|
|
|
|
|
Northern
Europe
|
1,323.3
|
1,463.9
|
-9.6%
|
7.6%
|
APME
|
533.1
|
573.7
|
-7.1%
|
2.1%
|
Right
Management
|
64.3
|
73.3
|
-12.2%
|
-4.8%
|
|
$4,542.2
|
$4,904.0
|
-7.4%
|
6.6%
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$ 17.4
|
$ 13.4
|
30.0%
|
30.0%
|
Other
Americas
|
12.8
|
12.6
|
1.7%
|
15.0%
|
|
30.2
|
26.0
|
16.3%
|
22.7%
|
Southern
Europe:
|
|
|
|
|
France
|
50.3
|
51.2
|
-1.9%
|
20.4%
|
Italy
|
14.0
|
12.6
|
11.1%
|
36.8%
|
Other Southern
Europe
|
4.7
|
4.6
|
4.6%
|
23.9%
|
|
69.0
|
68.4
|
0.9%
|
23.7%
|
|
|
|
|
|
Northern
Europe
|
33.3
|
38.4
|
-13.4%
|
2.0%
|
APME
|
18.8
|
20.2
|
-7.4%
|
2.5%
|
Right
Management
|
5.6
|
8.3
|
-31.8%
|
-26.9%
|
|
156.9
|
161.3
|
|
|
Corporate
expenses
|
(26.7)
|
(26.2)
|
|
|
Intangible asset
amortization expense
|
(7.4)
|
(8.2)
|
|
|
Operating profit
|
122.8
|
126.9
|
-3.2%
|
16.5%
|
Interest and other
expenses (b)
|
(10.6)
|
(9.2)
|
|
|
Earnings before income taxes
|
$ 112.2
|
$ 117.7
|
|
|
|
|
(a)
|
In the United States,
revenues from services include fees received from our franchise
offices of $3.4 million for both the three months ended March 31,
2015 and 2014. These fees are primarily based on revenues generated
by the franchise offices, which were $168.7 million and $169.1
million for the three months ended March 31, 2015 and 2014,
respectively.
|
|
(b)
|
The components of
interest and other expenses were:
|
|
|
|
2015
|
2014
|
Interest
expense
|
$ 8.0
|
$ 8.6
|
Interest
income
|
(0.5)
|
(0.9)
|
Foreign
exchange loss (gain)
|
0.7
|
(1.2)
|
Miscellaneous expenses, net
|
2.4
|
2.7
|
|
$ 10.6
|
$ 9.2
|
ManpowerGroup
|
Consolidated Balance
Sheets
|
(In
millions)
|
|
|
|
|
|
Mar.
31
|
|
Dec.
31
|
|
2015
|
|
2014
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 627.6
|
|
$ 699.2
|
Accounts
receivable, net
|
3,903.0
|
|
4,134.5
|
Prepaid
expenses and other assets
|
160.2
|
|
147.8
|
Future income
tax benefits
|
46.9
|
|
52.2
|
Total current
assets
|
4,737.7
|
|
5,033.7
|
|
|
|
|
Other
assets:
|
|
|
|
Goodwill
|
1,056.8
|
|
1,075.2
|
Intangible
assets, net
|
276.6
|
|
286.8
|
Other
assets
|
645.8
|
|
637.7
|
Total other
assets
|
1,979.2
|
|
1,999.7
|
|
|
|
|
Property and
equipment:
|
|
|
|
Land,
buildings, leasehold improvements and equipment
|
590.3
|
|
633.5
|
Less:
accumulated depreciation and amortization
|
452.1
|
|
484.4
|
Net property and equipment
|
138.2
|
|
149.1
|
Total
assets
|
$6,855.1
|
|
$7,182.5
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$1,574.2
|
|
$1,542.7
|
Employee
compensation payable
|
149.9
|
|
204.5
|
Accrued
liabilities
|
480.8
|
|
493.3
|
Accrued
payroll taxes and insurance
|
511.7
|
|
622.4
|
Value added
taxes payable
|
399.0
|
|
466.3
|
Short-term
borrowings and current maturities of long-term debt
|
45.6
|
|
45.2
|
Total current
liabilities
|
3,161.2
|
|
3,374.4
|
|
|
|
|
Other
liabilities:
|
|
|
|
Long-term
debt
|
376.1
|
|
423.9
|
Other
long-term liabilities
|
457.4
|
|
441.2
|
Total other
liabilities
|
833.5
|
|
865.1
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Common
stock
|
1.1
|
|
1.1
|
Capital in
excess of par value
|
3,102.9
|
|
3,084.2
|
Retained
earnings
|
1,733.5
|
|
1,667.8
|
Accumulated
other comprehensive loss
|
(274.8)
|
|
(155.2)
|
Treasury
stock, at cost
|
(1,702.3)
|
|
(1,654.9)
|
Total shareholders'
equity
|
2,860.4
|
|
2,943.0
|
Total
liabilities and shareholders' equity
|
$6,855.1
|
|
$7,182.5
|
ManpowerGroup
|
Consolidated
Statements of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31
|
|
2015
|
|
2014
|
|
(Unaudited)
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
earnings
|
$ 65.7
|
|
$ 70.1
|
Adjustments to
reconcile net earnings to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
18.7
|
|
21.6
|
Deferred income
taxes
|
18.2
|
|
(1.5)
|
Provision for doubtful
accounts
|
5.3
|
|
6.6
|
Share-based
compensation
|
6.7
|
|
10.8
|
Excess tax benefit on
exercise of share-based awards
|
(0.2)
|
|
(2.2)
|
Changes in
operating assets and liabilities, excluding the impact of acquisitions:
|
|
|
|
Accounts
receivable
|
(54.3)
|
|
27.8
|
Other
assets
|
(68.2)
|
|
(55.8)
|
Other
liabilities
|
30.4
|
|
(92.9)
|
Cash provided by (used in) operating activities
|
22.3
|
|
(15.5)
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(9.9)
|
|
(8.3)
|
Acquisitions
of businesses, net of cash acquired
|
(10.1)
|
|
(9.4)
|
Proceeds from
sales of property and equipment
|
0.3
|
|
-
|
Cash used in investing activities
|
(19.7)
|
|
(17.7)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Net change in
short-term borrowings
|
3.4
|
|
13.3
|
Proceeds from
long-term debt
|
0.1
|
|
-
|
Repayments of
long-term debt
|
(1.2)
|
|
(0.6)
|
Proceeds from
share-based awards
|
12.2
|
|
6.0
|
Other
share-based award transactions, net
|
(7.6)
|
|
(8.2)
|
Repurchases of
common stock
|
(39.6)
|
|
(16.7)
|
Cash used in financing activities
|
(32.7)
|
|
(6.2)
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(41.5)
|
|
(1.7)
|
Change in cash and
cash equivalents
|
(71.6)
|
|
(41.1)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
699.2
|
|
737.6
|
Cash and cash
equivalents, end of period
|
$627.6
|
|
$696.5
|
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SOURCE ManpowerGroup